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Are giveaways legal in Australia?

Giveaway platforms have become a popular method for brands to engage with their audience and increase sales. These platforms offer members exclusive benefits and the chance to win valuable prizes. However, understanding the mechanics, benefits, and legalities of such platforms is crucial for both businesses and participants.

Understanding Trade Promotions

Trade promotions are marketing techniques used to increase demand for a product or service. They can take various forms, such as discounts, contests, or giveaways. Trade promotions are legal as long as they comply with regulatory guidelines, which ensure fairness and transparency. Brands must adhere to these regulations to build trust and credibility.

Types of Giveaways

Giveaways can vary significantly in nature:

  • Cash Giveaways: Monetary prizes that attract a wide audience.

  • Product Giveaways: Items from the brand's inventory.

  • Service Giveaways: Access to premium services or subscriptions.

  • Limited-Time Offers: Special discounts or bonuses available for a short period.​

 

How Giveaway Platforms Work

Most giveaway platforms operate on a subscription model, offering members exclusive benefits and automatic entry into various contests. Membership perks can include significant discounts, access to flash sales, and guaranteed entry into all prize draws. Prizes are distributed through random draws, ensuring fairness and transparency. 

Estimra Plus Overview

Estimra Plus is a new player in the giveaway platform market, it is a branch of Estimra.com an Australian jewelry company. Estimra Plus is a giveaway platform that that offers its members a range of benefits for a low monthly fee. Key perks include 50% off storewide at Estimra.com, access to 70% off flash sales, and weekly giveaways with substantial cash prizes. Unlike many competitors, Estimra Plus ensures transparency by displaying the current number of members, which allows participants to see their actual odds of winning.

Comparison with Competitors

LMCT Plus is a leading competitor in the Australian market, known for its large-scale giveaways and extensive member base. However, Estimra Plus differentiates itself with several unique selling points:

  • Fairness: Only one entry per member, ensuring equal chances for all.

  • Transparency: Display of current membership numbers.

  • Multiple Winners: Each giveaway draws a minimum of five winners, increasing the odds of winning.

 

Building Trust in Giveaway Platforms

Many people are skeptical about giveaway platforms due to past experiences with bad actors. To build trust, platforms must:

  • Address Misconceptions: Clearly explain how the platform works and ensure compliance with legal standards.

  • Ensure Transparency: Display live member counts and previous winners.

  • Showcase Previous Winners: Highlighting past winners helps build credibility.

Click here to checkout the 4 myths we've debunked about giveaways!

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